Financial statements 2004

Notes to the consolidated income statement for the financial year ended at 31 December 2004

Sales

Sales in 2004 were €6,467 million, 8% higher compared to 2003 (€5,970 million). On an organic basis (measured by excluding the impact of currency effects and acquisitions/disposals and on a like-for-like basis for the number of business days in the first quarter) sales were also 8% higher. Currency fluctuations decreased sales by 1%.

Gross profit

Gross profit was €1,141 million or 17.6% of sales, compared with €1,074 million in 2003 (18.0% of sales). 

Special items

In 2004, special items relate to the profit on the disposal of the Group’s 51% interest in Niscom in Japan and the disposal of Sapphire in France. The special items amount to €23 million before taxation and to €12 million net of tax.

Analysis by segments

Since January 2003, the segment reporting is based on geography and industry sectors. An analysis by geography and by industry sector is the best reflection of the Company’s management structure and reporting lines. The accounting policies of the operating segments are the same as those described in the summary of significant accounting policies.

The Company evaluates performance based on country and sector contributions, which is defined as the amount of profit or loss before intercompany charges, interest income and expense charges, goodwill amortisation, special items and income tax expense.

The Company provides professional/executive and traditional recruitment services. Professional/executive recruitment services include the provision of personnel within the Information Technology, Accounting, Engineering, Healthcare, Education and Other sectors.

Geographic analysis	Total assets		Total liabilities		Investments in intangible and tangible fixed assets		Depreciation of intangible and tangible fixed assets
	2004	2003	2004	2003	2004	2003	2004	2003
France	847	824	691	651	10	16	20	17
UK	190	157	77	50	7	5	6	6
USA	132	119	29	30	1	1	4	5
Netherlands	89	100	137	181	4	3	4	6
Rest of Europe	348	313	601	644	7	5	7	7
Rest of World	82	116	38	66	3	4	3	3
Intangible fixed assets	548	819			20	11	276	274
	2,236	2,448	1,573	1,622	52	45	320	318

Geographic analysis		Sales		Operating income (loss)
	2004	2003	2004	2003
France	2,859	2,782	88	78
UK	840	679	53	47
USA	495	447	21	14
Netherlands	478	486	10	11
Rest of Europe	1,273	1,111	33	15
Rest of World	522	465	23	20
Corporate expenses			- 11	- 11
			217	174
Goodwill amortisation			- 276	- 274
Special items			23
	6,467	5,970	- 36	- 100

Industry sector analysis	Sales		Total assets		Investments in intangible fixed assets
	2004	2003	2004	2003	2004	2003
Information Technology	655	572	153	147	3	3
Healthcare	430	404	110	107	2	3
Engineering	363	290	85	74	2	2
Accounting	247	214	62	57	-	-
Education	113	115	25	27	1	1
Other sectors 1)	322	265	75	67	3	2
Professional/executive	2,130	1,860	510	479	11	11
Traditional	4,337	4,110	1,178	1,150	21	23
Intangible fixed assets			548	819	20	11
	6,467	5,970	2,236	2,448	52	45

1)	From 2004, Vedior is reporting its sales derived from outplacement and outsourcing activities as part of Other professional/executive. The comparative numbers have been adjusted accordingly.